Bankruptcy in Indianapolis IN is among the top methods for becoming debt-free. However, consumers must meet eligibility requirements based on a means test. Additionally, the consumer should keep in mind that they are not allowed to begin any new lines of credit while in bankruptcy. This implies that the consumer is unable to acquire personal loans for emergencies or home repairs.
Is Bankruptcy the Right Choice?
For a consumer to qualify for any chapter of bankruptcy, he or she must undergo the means test. This implies that they are eligible for Chapter 13 because their income is above the average for Marion County, or their income is below the median which makes them qualified for Chapter 7. However, if the consumer’s income is above the median, he or she can utilize Chapter 7 as well.
Chapter 7 initiates a liquidation of all assets and properties. If the court establishes that the homeowner has more equity in their home than is owed, it is not excluded from this sale. The trustee assigned to their case distributes the value to them that is exempt, but they cannot continue living in the property.
Chapter 13 requires that the consumer and their attorney produce a repayment plan for all of his or her debts. While, yes, this chapter allows him or her to settle debts over time, they are also required to utilize all expendable income to pay off debts that were not included in the bankruptcy. A drawback to this selection is that the consumer will not have any disposable income for the next three years. This is the required amount of time to submit all excess income to creditors. Consumers, who wish to file for bankruptcy, should visit us website.
Alternatives to Bankruptcy in Indianapolis IN
Consumers who possess at least fair credit ratings may acquire a consolidation loan. This loan allows them to settle all debts and remit one payment each month. The advantages of this product are that it does not impose restrictions; the consumer is in full control over the funds, and he or she can pay off the debts themselves without a trustee. Alternately, the loan could present a higher overall interest rate, which ultimately means he or she pays more than the collected value of these debts.
